THE property market in Pontian softened in the second and third quarters of last year, with a slight drop in the volume and value transaction.
The residential sub-sector retained its lion’s share of the market, followed by agricultural, commercial, development land and industrial. Market activity across all sub-sectors witnessed downward figures, although buying interest is still strong. In the review period, there were 1,624 transactions worth RM1.12 billion recorded.
Based on data from National Property Information Centre (Napic), Q2 2016 & Q3 2016 recorded 325 transactions for a total value of RM75 million. Prices of residential property were stable on the whole with isolated movements.
Generally, the new residential developments in Pontian are on small schemes. Pontian Kechil town centre, Kukup town and Pekan Nanas town are active areas in residential development; other areas are Jalan Parit Semerah and Jalan Sawah, located on the fringes of the town.
In the review period, single-storey semi-detached houses saw a high number of new launches, followed by double-storey terraced houses, double-storey semi-detached houses and detached houses. In total, there were 12 new launches of residential developments in the district of Pontian during the review period.
Prices for second-hand single-storey terraced houses in Pontian generally range from RM250,000 to RM300,000 while prices for new launches range from RM300,000 to RM350,000. Second-hand units for double-storey terraced houses generally range from RM320,000 to RM380,000, while for new launches, prices range from RM400,000 to RM500,000.
Prices for single-storey semi-detached units generally range from RM320,000 to RM380,000 (second-hand units) and RM380,000 to RM450,000 (new). Prices for double-storey semi-detached units range from RM380,000 to RM450,000 (second-hand units) and RM500,000 to RM600,000 (new).
For detached houses prices range from RM400,000 to RM600,000.
The land size for terraced houses range from 1,500 sq ft to 1,800 sq ft. Price is dependent on the land size, design, and concept of the development.
The residential rental market remained promising. Rental uptrend was recorded in several choice locations mainly due to tenancy and rental renewals. Houses nearby town and commercial centres experienced rental growth. Furthermore, limited supply of single- and double-storey low-cost terraced houses in several well located schemes also led to rental increase.
Based on data from Napic, Q2 2016 & Q3 2016 recorded 534 transactions for a total value of RM194.62 million.
Prices of agricultural property were generally stable with increases noted in selected areas. Higher prices were recorded in Kampung Sungai Boh, Tenggayun and Teluk Kerang.
Generally, lands located at interior roads recorded prices of RM130,000 to RM150,000 per 0.4ha while lands located along main roads recorded prices of RM200,000 to RM300,000 per 0.4ha.
The most active areas are in Mukim of Rimba Terjun and Sungai Karang. The influencing factors are the completion of a new road, namely Jalan Pekan Nanas-Tanjung Bin and a few proposed residential developments there.
The price of Malay Reserved land located in Jalan Pekan Nanas-Tanjung Bin and the area surrounding the Tanjung Bin power plant recorded an increase to RM80,000 per 0.4ha, compared with RM50,000 three years ago. Other areas remain at RM45,000 to RM50,000 per 0.4ha.
Based on data from Napic, Q2 2016 & Q3 2016 recorded 47 transactions for a total value of RM20.95 million.
Performance of the commercial sub-sector was moderate. A new commercial scheme located in Pontian — Pusat Perniagaan Kota Emas — recorded a take-up rate of 80 per cent after its completion last year.
Higher prices and demand were recorded in the town area, i.e. Pontian Kechil town centre and Pekan Nanas, followed by Benut and Kukup. New commercial developments are located at Benut, Pekan Ayer Baloi and Pekan Nanas.
The prices for double-storey terraced shops range from RM380,000 to RM450,000 while three-storey terraced shops were priced from RM700,000 to RM900,000 for second-hand units. For new launches, the selling prices start from RM600,000 and RM800,000 for double- and three-storey terraced shops, respectively.
A similar stable trend was seen in the rental segment. However, some selected schemes near shopping localities and newly completed housing schemes recorded a rental increase. Positive rental movements were recorded also due to tenancy and rental renewals. The ground floor remained in high demand compared with first or second floors.
Based on data from Napic, Q2 2016 & Q3 2016 recorded 706 transactions for a total value of RM790.52 million.
Prices of development land were generally stable with increases noted in selected areas. Development land zoned for residential, commercial and industrial purposes recorded higher prices at RM12 per sq ft, RM18 per sq ft and RM15 per sq ft, respectively. Meanwhile, vacant detached plots for residential, commercial and industrial purposes were priced from RM25 to RM30 per sq ft, RM40 to RM50 per sq ft and RM20 per to RM35 per sq ft, respectively.
Higher prices for industrial development land were recorded in Pekan Nanas, especially at Kampung Jeram Batu and Ulu Pulai, and Sungai Boh which is near to Tanjung Bin power plant. For residential development land, higher prices were recorded at Jalan Parit Semerah in Pontian, Jalan Sawah in Pekan Nanas and within Rambah area. Benut, Pontian Kechil and Pekan Nanas registering higher prices for commercial development land. Agricultural land with development potential — located in Jalan Pontian — Benut; Jalan Pontian — Pekan Nanas; Jalan Pekan Nanas — Tanjung Bin; and Jalan Pontian — Kukup — recorded higher prices.
Based on data from Napic, Q2 2016 & Q3 2016 recorded 12 transactions for a total value of RM48.86 million.
Prices of industrial property recorded moderate movement, with unsold industrial property — both under construction and completed — registered a minor increase.
Existing industrial schemes in Pontian include Kawasan Perindustrian Pontian, Taman Perindustian Pontian Jaya, Taman Perindustrian Pontian Maju, Pekan Nanas Industrial Park, Taman Perindustrian Ulu Choh and D’Hoff Park.
Meanwhile, new industrial schemes entering the market are Alam Jaya Business Park and The Cube. Pekan Nanas Industrial Park conquered the industrial property market in Pontian due to Shimano’s presence.
The prices for double-storey terraced factories start from RM700,000 while one-and-a-half-storey semi-detached factories conquered the industrial market with the price range of RM2 million to RM5 million, or RM200 to RM300 per sq ft per built-up area.
The property price in Pontian is expected to increase, especially in Serkat because of the proposed bridge crossing Sungai Pulai and the link road from Pelabuhan Tanjung Pelepas to Tanjung Bin. Other areas include Mukim of Air Masin and Sungai Karang, Daerah Pontian and Mukim Pulai Daerah Johor Baru, Johor.
The bridge and link road provides a direct connection between Pelabuhan Tanjung Pelepas and Tanjung Bin with a total length of approximately 7.5km — 3km as a long elevated structure, 4.2km on embankment fill and the remaining 0.3km on untreated ground.
Sultan Ibrahim Sultan Iskandar also called for another airport to be built in Johor, as he said the Senai International Airport could reach its capacity in the future. He suggested Pontian as a possible location for the new airport.
Pontian, he said, could also be a strategic location for another seaport, due to its proximity to the Straits of Malacca. This speculation also gave effect to fluctuation of property prices.
Story courtesy of Henry Butcher Malaysia